If there is a chance of you being scammed then you will surly be scammed. Only ever loan Bitcoin if you can get a trusted 3rd party to hold collateral at 110%-120% of the value of the loan, which will at least cover you when they default. I doubt it is very profitable in all honesty.

Pretty much; essentially, only you as the buyer would end up being protected in this case, not the seller (since Bitcoin is not reversible, and Paypal is) - the escrow will ensure both BTC and Paypal payments are transferred to the other party, but there is basically nothing he can do to protect against chargebacks.

Hmm, maybe I'm missing something, but CEG5952's trust rating seems to be quite positive - not default trust positive, but positive nonetheless. He has no negative feedback on his account that I can see; maybe you are confusing his "sent feedback" with the feedback he received?

At any rate, if you do find someone willing to take the risk of trading BTC for Paypal, and you do want to deal with that someone, be sure to contact an escrow (contact one of the users featured in the following thread, for example: https://bitcointalk.org/index.php?topic=855778.0). They will guide you through the process (and it should be fairly simple and straightforward: the seller sends the BTC to the escrow; you send the Paypal payment to the seller; escrow sends you the BTC).

I tried to contact him for the exchange and he said that my trust ratings are 'risky'.

@op - You consider sending paypal first as risky? It is risky ON MY END because bitcoin is irreversible.

With everaja's warning, TRADE with EXTREME CAUTION.

Multibit is opensource and only downloads about 1-30 MB depending on the number of transactions you ve done.
Multibit isn't more risky than the QT when it's about losing your coins. And reinitializing the blockchain
in Multibit, in case of key-import takes also "ages" because the client has to go through the whole chain
if no start-point is definied.

remember, the biggest risk to lose bitcoins is the person infront of the computer.
If you want to use bitcoin as a longterm investment i d recommend you to transfer the
coins to a cold wallet and hide the private-key (printed & digital[offline]) at a secure place.

If you want to keep them on your computer make sure he s clean.
Antivirus, Firewall & Co. will help you minimizing the risk to lose coins.
Don't install/run unverified software. Try compiling your own wallets.
Don't use download-URL's from forums/advertising and other 3rd party websites.
Always be sceptical and check everything multiple times.

cheers,
bitsta

I wouldn't recommend to store / transfer a wallet through the internet. But if you want to have a online backup, then please don't use Google Drive or Dropbox, better use Spideroak or your own cloud. Always encrypt it, maybe create a TC container with a strong password (alternatively Winrar). Good luck

You are new to this forum, people would scam someone for even less than a dollar. Anything of value that you do not have access to until you have repaid me can be collateral. There are exceptions to be made but these are only for established members, who have a track record. Since you do not have one, I would require collateral. Also please read threads when you reply, it clearly states the information I need to make a discussion. For example you do not explain when you will pay back your loan, nor do you propose an interest rate. Please read the thread, and reply accordingly, especially when you do increase in your activity on this forum, people will look back at your past posts in order to make decisions, it would look best if you have quality posts. If you can think of something you do have to offer as collateral I might reconsider.

What encryption is concerned: it depends. The wallet will be only as secure as the encryption you used to encrypt it beforehand. If you don't encrypt it at all, there's no safety whatsoever. People using a truly random one-time-pad may be completely safe.
Oh, important: Never let a computer on the Internet that is able to decrypt the wallet (has the key to decrypt the wallet), since if that computer is compromised your wallet has to be considered compromised, as well.